TPG share price takes off as full-year profit soars 350%

The telco posted more than $4 billion of revenue for 2022.

| More on:
A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The TPG share price is lifting 2% right now to trade at $4.825 
  • Its gains follow the release of the company's full-year earnings, in which it declared a 9 cent per share dividend
  • It also posted a 350% jump in profits and $4.4 billion in revenue

The TPG Telecom Ltd (ASX: TPG) share price is in the green on Monday after the company released its full-year earnings.

Shares in the S&P/ASX 200 Index (ASX: XJO) telecommunications provider are currently up 2.22%, trading at $4.825.

TPG share price launches as earnings and dividend bolstered

Here are the key takeaways from the telco's 2022 earnings:

What else happened in 2022?

TPG saw plenty of growth last half, welcoming 300,000 new mobile subscribers – ending the year with 5.28 billion mobile customers – and continuing its 5G rollout faster than expected.

Its average revenue per user also grew 1.9% to $32.40 a month, boosted by higher international roaming levels.

TPG Telecom boasted 2.22 million of fixed customer subscribers at the end of 2022 – flat with the prior year, while its fixed wireless subscribers more than doubled to 171,000.

Looking at its enterprise, government, and wholesale leg, major customer wins included Hungry Jacks, Lifeline, and Freedom Furniture. It booked more than $150 million of total contract value in 2022.

It also delivered $140 million of annualised cost synergies from the 2020 merger of Vodafone Hutchinson Australia and TPG Corporation, offsetting inflationary pressures.

What did management say?

TPG CEO and managing director Iñaki Berroeta commented on the results driving the company's share price today, saying:

These results reflect solid execution of our strategy as we benefited from renewed customer activity throughout 2022. The operational and strategic foundations we have put in place are translating to an improving financial performance, which we expect to gather momentum through 2023.

The ACCC decision not to authorise [a proposed] network sharing agreement was a significant loss for regional Australia and for consumers and businesses. TPG Telecom and Telstra Group Ltd (ASX: TLS) are challenging the decision through the Australian Competition Tribunal.

What's next?

TPG expects to post between $1.85 billion and $1.95 billion of EBITDA for financial year 2023.

That assumes no material change in operating conditions and excludes material one-offs and transformation costs.

TPG share price snapshot

Sadly, today's gains haven't yet proven enough to push the stock back into the longer-term green.

The TPG share price has risen 1% since the start of 2023. Though, it's down 12% over the last 12 months.

For comparison, the ASX 200 has gained 4% year to date and 3% over the last 12 months.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Tpg Telecom. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Earnings Results

Business people discussing project on digital tablet.
Earnings Results

2 ASX All Ords shares surging over 10% on strong results

Investors are buying these shares in response to strong results this morning.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Earnings Results

Xero share price rockets to record high on explosive half-year growth

The tech star delivered another impressive half year results this morning.

Read more »

A man cheers after winning computer game while woman sitting next to him looks upset.
Earnings Results

2 high-flying ASX 200 gaming shares splitting ways today

Which gaming giant is winning the admiration of investors amid results?

Read more »

Male building supervisor wearing high vis vest and hard hat stands and smiles with his arms crossed at a building site
Industrials Shares

This $23 billion ASX 200 stock is surging 6% while the market sinks. Here's why

This ASX 200 stock is shrugging off the wider market sell down today and racing higher. But why?

Read more »

Unsure man analysing data on laptop.
Earnings Results

ASX 200 tech stock sees red as investors punish Q3 results

Investors continue digesting the numbers.

Read more »

Female miner smiling in front of mining vehicle.
Resources Shares

Guess which ASX lithium share is racing 8% higher on record production

Investors are sending the ASX lithium share racing higher on Wednesday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Earnings Results

CBA shares on watch after delivering $2.5b quarterly profit

The banking giant has made a big quarterly profit. But will it be enough for the market?

Read more »

a farmer kneels on one leg and closely examines soil from his farm against a blue sky backdrop.
Earnings Results

ASX 200 consumer stock surges despite loss and dividend cut

Investors were quick to overlook the negatives.

Read more »